FAPMTL 2 (Shared Cost and Workforce Investment Act Administration Adjustment)
Fiscal Administrative Procedure Manual Transmittal Letter No. 2
July 13, 2006
TO: All Fiscal Administrative Procedure Manual Holders All County Departments of Job and Family Services Directors
FROM: Barbara E. Riley, Director
SUBJECT: Shared Cost and Workforce Investment Act Administration Adjustment

In county departments of job and family services, the total amount of shared cost allocated to Workforce Investment Act (WIA) programs by full-time equivalents (FTEs) and Random Moment Sample (RMS) time studies is charged to WIA administration. The shared cost pool includes some costs that are considered an allowable program expense for WIA. Attached to this fiscal administrative procedure manual transmittal letter (FAPMTL) are instructions for properly calculating the WIA program and administration amounts associated with shared costs allocated to WIA.

Implementation and use of the reclassification method will greatly reduce the amount of shared costs being attributed to WIA administration and instead accurately reflect the charge as it affects a WIA program expense. Please note this will not reduce the total shared costs charged to WIA, only the distribution between WIA administration and WIA program allocations. The spreadsheet included in this FAPMTL should be used to calculate the amount of shared costs allocated to WIA administration and WIA program.

To determine which employees in the shared cost pool are considered administration for WIA, please review the Department of Labor (DOL) guidelines and definitions of administration. These guidelines and definitions are contained in the Code of Federal Regulations, Title 20, Chapter 5, Volume 3 [CITE: 20CFR667.220].

Attached is an Administrative Cost Allocation (ACA) spreadsheet, a sample ACA spreadsheet, and instructions for completion of this spreadshee, provided for your assistance. While ODJFS does not require counties to use this specific spreadsheet, information captured herein should be included in any other format that counties use.

The provisions for the WIA Administration adjustment effective SFY 2005 are contained in rule 5101:9-31-06 of the Administrative Code.

Should you have additional questions regarding this FAPMTL, please contact your local fiscal supervisor or the Bureau of County Finance and Technical Assistance at (614) 752-9194.

Attachments:

Administrative Cost Allocation (ACA) spreadsheet.

Instructions for completion of ACA spreadsheet.

Sample ACA spreadsheet.

Code of Federal Regulations, Title 20, Chapter 5, Volume 3 [CITE: 20CFR667.220].